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The global ground support equipment market size was USD 5,279.5 million in 2019 is projected to reach USD 6,640.7 million by 2027, exhibiting a CAGR of 4.22% during the forecast period from 2020 – 2027.
Ground support equipment (GSE) is normally used at airports to provide service the aircraft between flights. GSEs are primarily used to support safe operations of the aircraft before taking off and after landing at the airport. The GSE mainly involves a variety of ground power operations such as cargo, aircraft mobility, and passenger loading operations. For quick accessibility, These GSEs are generally kept on a ramp near the terminal when not in use.
There are mainly two types of GSEs used at airports, namely Non -powered GSEs and powered GSEs. Non-powered GSEs include dollies, chocks, and aircraft tripod jacks. At the same time, the powered GSEs comprises of refuelers, tugs and tractors, ground power units, buses, container loaders, passengers boarding steps and stairs, and others.
A significant increase in air traffic and cargo transportation are the major factors driving the growth of this market. Recently, the Long Beach airport in California installed 15 electric chargers to power its equipment and reduced emissions; thus, the airport now uses electricity to power 100% for its commercial gates. The airport estimates that it will be able to lower its nitrogen oxide emissions by almost two thousand pounds a year by 2023.
As per the data released by the International Air Transport Association (IATA), the global airline passenger revenues will decrease by USD 314 billion in 2020, which constitutes a decline of 55% compared to the previous year.
As per data by the IATA, Asia Pacific airlines will witness a record revenue decline of USD 113 billion compared to last year, which is the biggest drop among all the regions. There will be a 50% decrease in passenger demand this year in Asia Pacific compared to last year. The estimate in March stated that there would be a 37% decrease in passenger demand this year.
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Emission Control Regulations For GSE Is Supporting The Market Growth
The aviation industry is constantly focusing on the adoption of greener products. Regulatory authorities are continuously working on implementing improved guidelines towards the development of eco-friendly processes and technologies. Increasing awareness about environmental concerns will create a huge demand for eco-friendly and greener variants of aircraft ground support equipment (AGSE) in the aviation sector. Bahrain Airport Services Company had recently announced its plans of transitioning to greener operations. The key focus of the company is to acquire a new product, which will be powered by solar energy, or electricity that will replace diesel- and petrol-powered fleets in the next five years.
Flux Power Holdings Inc., had revealed its range of lithium-ion batteries that are used in newer aircraft equipment such as tractors and electric forklifts to replace traditional lead batteries. Camso has launched new pneumatic tires that are designed for the use of products such as tow tractors, baggage tractors, and others.
Used and Refurbished Products Gain Popularity
Nowadays, major airlines are focusing on the modernization of ground support equipment. Airport GSE businesses are paying attention to refurbishing old equipment to maximize lifespan and add upgrades that help in making significant savings in the costs. The London Luton airport is using a revolutionary system of collective pooling of GSE such as belt loaders, aircraft stairs, and others. This leads to cost-saving, boost aircraft turnaround, reduce congestion, and reduces delays overall. In April 2018, Cavotec had signed an airport modernization contract with Bahrain International Airport. The contract includes installation, and testing of Cavotec sub-freezing DX arctic pre-conditioned air units, and in-ground pit systems that help in reducing the number of vehicles used to service aircraft.
Increase in Air Traffic and Cargo Transportation is Propelling Market Growth
An increase in the overall air traffic and cargo transportation has contributed to the growth of the market. Furthermore, an increase in the adoption of advanced GSE by airports drives the market across the globe. According to the data released by the International Air Transport Association (IATA), 52.2 million metric tons of cargo were transported in 2015 and are expected to increase at a CAGR of 4.1% for the next five years.
In addition, a total of 4.3 billion passengers were carried by air transport in 2018, which was 6.1% more than in 2017. IATA’s 20-year air passenger forecast shows that the number of air travelers could double to 8.2 billion by the end of 2037. Thus, in turn, is expected to drive the market growth.
increasing focus of Airports on Enhancement of Operational Efficiency Will Aid Growth
Airports are making continuous improvements to increase their operational efficiency and decrease turnaround time. The development of underground GSE has helped in reducing operational time and reduced the congestion of equipment on airports. For instance, airports in the Caribbean and Latin America are using collaborative decision making (CDM) tools for improving operational efficiency since June 2019. The CDM tool worked on real-time information exchange that increases the predictability of operations by increasing the situational awareness and enhancing the quality of planning. The adoption of advanced GSE drives the growth of the market.
Inadequate Airport Infrastructure for Charging Electric GSE Hampers the Market Growth
Nowadays, most airlines increased the use of electric ground support equipment (GSE) as it helps in reducing non-aircraft exhaust emissions at airports. Lack of charging infrastructure for electric products is the major factor that hampers the growth of the market.
Besides, the high acquisition cost of this product hampers the growth of the market. The limited life span of most of the equipment due to which it requires continuous replacement that also one of the restraining factors for the growth of the market.
Increasing Demand for the Product Will Drive the Growth of the Market
Based on the type, the market is segmented into mobile GSE and fixed GSE. Among these, the mobile GSE segment is estimated to grow at the highest CAGR during the forecast period. Mobile GSE plays an important role in airport operations as this equipment performs on-time performance for airlines. Different types of mobile GSE are pushback tractors, forklifts, cargo loaders, container pallet transporters, bulk loaders/conveyors, cabin service vehicles, baggage tractors, boarding stairs, passenger buses, deicers, aircraft fueling trucks, ground power units (GPU), and others. Increasing air traffic and a rise in the number of airport expansion is expected to drive the growth of the mobile GSE segment during the forecast period.
growing adoption of Energy Efficient and Green Technologies Drive the Growth of the Market
Based on the power source, the market is classified into non-electric, electric, and hybrid. The electric segment holds the largest market share. Growing demand for energy-efficient, green, and clean GSE technologies drives the growth of the electric segment in this market for the forecast period.
The non-electric segment will witness significant growth during the forecast period. The growth is attributed to the increasing number of airport expansions projects and the rising number of air travelers. The hybrid segment shows moderate growth owing to the increase in expenditure from airlines on airport modernization programs and the procurement of new equipment.
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Increasing Demand for Electric GSE for Commercial Applications Propelling the Market Growth
By application, the support equipment market is segmented into commercial and military. The commercial segment will witness significant growth in the market during the forecast period. The commercial segment includes passenger services, cargo services, and aircraft services. An increase in air traffic and freight movement across the world boosts the demand for a commercial product.
The adoption of electric GSEs has increased in commercial applications across North America and Europe. Most of the countries in Asia Pacific are still using diesel engines for various commercial applications. The military segment will show a moderate growth owing to the increasing expenditure from airlines to procure advanced ground power units for large fighter aircraft and helicopters.
Rising Expenditure on Procurement of New Equipment’s drive the Growth of the Market
Based on the component, the market is divided into equipment and maintenance. The equipment segment is estimated to show significant growth during the forecast period. The growth is attributed to the growing demand for new equipment from greenfield airport. Furthermore, the conversion of fossil fuel GSEs into electric GSEs propels the growth of the market. The maintenance (MRO) segment shows a systematic growth owing to the continuous maintenance and parts replacement of equipment due to limited lifespan. The up-gradation and modernization programs in existing GSEs from key players drive the growth of the market.
North America Ground Support Equipment market size, 2019 (USD Million)
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The market has been segmented into North America, Europe, Asia Pacific, The Middle East, and the Rest of the World. North America is anticipated to be the largest market during the forecast period. An increase in the demand for electric and hybrid GSE in the U.S. will aid the growth of the market. The presence of a large number of airports and high expenditure from airlines for modernization of airports drive the ground support equipment market growth across the region.
Asia Pacific will witness significant growth during the forecast period. The growth is attributed to the rise in the number of airlines and airports in emerging economies such as China and India. Furthermore, increasing air traffic and cargo transportation throughout the region propels the growth of the market. Europe is anticipated to witness moderate growth owing to the increasing imports and export activities and the growing number of air travelers. The Middle East shows significant growth due to the rise in the number of airport expansion projects and cargo movements. The Rest of the World will witness moderate growth owing to the increase in several airports and the adoption of advanced GSE for efficient operations at the airport.
Adoption of Key Growth Strategies Such As Merger & Acquisitions, Agreements, Contracts, and Partnerships By Key Players Drive the Market Growth
Introduction of advanced technologies such as fully electric GPUs (Ground Power Units), alternative fuels, wireless charging of electric vehicles is the latest trends in the GSE market. The key players adopted different growth strategies such as contracts, agreements, business expansions through mergers and acquisitions, and partnerships are the prominent factors responsible for the dominance of these key market players.
The market research report offers qualitative and quantitative insights on the ground support equipment. It further highlights detailed analysis of market size & growth rate for all possible market segments.
Along with this, the report provides an elaborative analysis of dynamics, market trends, and competitive landscape. Key insights offered in the report are the adoption trends on GSE by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.
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Value (USD Million)
By Power Source
Fortune Business Insights says that the global Ground Support Equipment mMarket was valued at USD 5,279.5 million in 2019 and is projected to reach USD 6,640.7 million by 2027.
Growing at a CAGR of 4.22%, the market will exhibit steady growth in the forecast period (2020-2027).
In 2019, the market value stood at USD 5,279.5 million.
The electric segment is estimated to be the leading segment in this market during the forecast period.
Increasing air traffic, and cargo transportation propel the growth of the market.
Cavotec SA, Curtis Instruments, Inc., GATE, Guangtai, ITW GSE, JBT Corporation, and among others, are some of the leading manufacturing companies in the market.
North America is projected to be the largest shareholder in the global GSE Market. An increasing number of air travelers and the expansion of new airport projects are anticipated to boost the market in North America.
Emission control regulations drive innovations in aircraft ground support equipmentGSE and are the latest trends in the market.
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